November 28, 2006	Tuesday	Ziqa'ad 6, 1427

KARACHI, Nov 27: Cotton prices on Monday remained stable around the previous levels but some of the fine lots were sold higher by Rs25 per maund on active mill demand.

Mill off-take was maintained on the higher side as leading groups continued to build up long positions amid fears of short supply and price flare-up, dealers said.

They said holding back of stocks of phutti by growers had created supply and demand problems which in turn was fuelling the current price hike.

Ginners said the current selling rates were based on the previous phutti rates of around Rs1,100 per 40 kg, but they could be much higher when calculated at the prevailing rate of Rs1,300-1,325 per 40 kg.

“Growers are holding on to bulk of the second picking of phutti as the third picking is almost edging toward its end and could modestly add to the total”, they said, adding “so growers intend to get further higher prices for their produce”.According to reports reaching here many growers are preparing cotton fields for sowing wheat after having cut the standing plants without picking the third picking.

Meanwhile, panic buying continued by the spinners and mills as no one among them is inclined to have a second thought on the prevailing panic among them, they said.

There was, therefore, no change in the official spot rates and were again quoted at the previous level of Rs2.450 for average quality lint.

Ready business totalled about 25,000 bales as under.

SINDH VARIETY: 1,000 bales, Mirpurkhas at Rs2,360-2,385, 2,000 bales, Tando Adam at Rs2,385-2,400, 1,000 bales, Shahdadpur at Rs2,400-2,425, 1,000 bales, Sanghar at Rs2,350-2,400, 1,000 bales, Moro at Rs2,460 and 2,000 bales, upper Sindh at Rs2,525.

PUNJAB TYPE: 2,000 bales each, Bahawalnagar, Ahmedpur East, Rahimyar Khan, Sadiqabad, Rajanpur and Jalalpur at Rs2.525, 1,000 bales, Muridwala at Rs2,500, 1,000 bales, Sahiwal at Rs2,450 and 1,000 bales, Vehari at Rs2,475.